Rating agency ICRA has revised the outlook on Piramal Capital & Housing Finance Ltd's debentures, long term loans and tier II bonds from stable to negative. The change in outlook factors in the increased risk profile of the wholesale lending. It may impact the asset quality going forward.
The loan book of Piramal group entity is concentrated towards the inherently risky real estate sector, albeit with a declining trend (73 per cent of the overall loan book as on December 31, 2018 down from 87 per cent as on March 31, 2017). The risk is further increased by ongoing downturn